iShares MSCI Malaysia Index Fund (ETF) (AMEX:EWM)

Malaysia ETF

malaysia offers asian market access with less risk

retail sales grew nearly 10% year over year

Even with March and June 2007 corrections in Shanghai Index and expected bursting of the Indian bubble, Malaysia's efforts to diversify it's economy are paying off, and should be able to weather current and mid-term turbulence, while still posting gains.

It's financial sector (~30% of economy) is likely to take a hit on inflation fears this year, but that should only amount to a brief speed bump.

Tourism is up, and more Chinese are traveling. Many will want to see this gem of a country, and spend some of their hard earned yuan.

Buy and hold long.

Great emerging economy. In the last 20 years, Malaysia economy has been transformed from a protected low income supplier of raw materials to a middle income emerging multi-sector market economy driven by manufactured exports, particularly electronics and semiconductors, which constitute about 90% of exports. Since 1970, and the institution of the New Economic Policy (NEP) following deadly riots in 1969 against economically dominant ethnic Chinese, the government's commitment to the free market has been hedged by its bumiputurna (literally, "sons of the soil") policies aimed at providing "constructive protection" for Islamic Malays against economic competition from other ethnic groups and foreign investors, particularly in the domestic market. In the Asian financial crisis of 1997, most of the major companies that the government had privatized and reserved for bumiputurna leadership, including Proton, the national car company, Malaysian Airlines, the Renong engineering group, and the Malaysian Resources media group, had to be renationalized to prevent their collapse. A vigorous recovery program mounted by the government that was showing positive results in 1999 and 2000 ran abruptly into the wall of the 2001 global slowdown. Worldwide, foreign direct investment dropped almost 50%, and in Malaysia the decline was an even more precipitous 85%. Gross domestic product growth dropped to 0.7% for 2001, from its usual 7% to 9%. Business in Malaysia remains dominated by non-Malays. Annual growth rates, which had been running 7% to 9%, came abruptly up against a wall in 2001. The government remains generally committed to a policy of free enterprise, although it owns and operates the railway and the majority of the communications systems and has become increasingly involved in certain key industries.

Malaysia will bust out big

Over time, this ETF will continue to grow just as it has in the past

Cheap labor, plenty of natural resources and a growing financial sector.

Has more to gain for the year and the next few after that.

Malaysian stocks are doing good in general.

Malaysia, a middle-income country, transformed itself from 1971 through the late 1990s from a producer of raw materials into an emerging multi-sector economy with services sector contributing the highest to the GDP in 2006. The economic growth stood at 5% per year in 2005-06. The company recorded a GDP per capita at $12,700 as against comparable economies of China, India and Thailand.

iShares MSCI Malaysia Index Fund seeks to mirror investment results that correspond to the price of publicly traded securities on the Kuala Lumpur Stock Exchange. The Fund consists of 60 companies, with top ten companies forming 53.80% of the index and exposure to Banking and Financial services sector stands at a massive 32%. Malayan Banking BHD and Bumiputra-Commerce Holdings BHD together control 18% of the index value. Over the past one year the fund has posted a startling 42.61%.

The economy remains dependent on continued growth in the US, Singapore, China, Korea and Japan - top export destinations and key sources of foreign investment. However, Malaysia has grown less sensitive to the US and more sensitive to East Asia, especially China, in recent times. Assuming that oil prices would remain largely stable if not lower, the Malaysian economy could register a 5.5% growth in 2007 & 2008 on the premise that domestic demand will be propped.

Growing at a faster pace than earlier expected, the Malaysian economy continued to remain resilient despite threats of higher inflation across Asia, which has moderated at 2.5%. The fear of higher interest rates has subsided, as Bank Negara had stopped raising the Overnight Policy Rate (OPR) during its last five policy meetings. This is reasoned on the deceleration in inflationary pressures.

Also, healthy foreign exchange reserves at nearly $84 billion, increasing FDI, strengthening ringgit and a small external debt greatly reduce the risk that Malaysia will experience a financial crisis over the near term similar to the one in 1997.

The economy of Malaysia will be prosperous and strong with no doubt.

Malaysia Emerging Market ETF

I believe Malaysia is a hot economy and will still outperform, especially after the knee jerk reaction of dumping foreign stocks when the China Speculation Bubble Burst. This emerginge economy will continue to grow profits in the next 3 years.

ASIA IS HOT SECTOR

A GROWING ECONOMY WILL MAKE THIS A WINNER.,...

The Malaysian stock market KLSE has been strong over the last few years, and I believe it will continue for the next few years. It is up over 10% for January 2007 and I expect another 20 to 30% gain before 2007 year end. I think it is an excellent play while the investment world has its focus on BRIC funds.

The China influence

Cawabonga!!!!

Malasia. All I can say is you need to go there. Things are going nuts over there and the economy is ripe for more investment.